The Philippines’ information technology and business process outsourcing (IT-BPO) industry is a driving force in the country’s economy. After having been booming for years, it is still expanding in different key cities. Thanks to its highly diversified and competitive offer, the sector is one of the most dynamic in the Philippines.
According to a study conducted by World Bank, the Philippine IT-BPO sector has the potential to earn export revenues of 55 billion US $ by 2020 up from 30 billion US $ currently. The sector’s demand for new jobs continues to increase every year, benefiting from the lower operational costs and the high literacy rate of the Filipino workforce. These factors make multinational companies eager to expand their services all over the Philippines.
IT-BPO: a key sector in the Philippines
According to the Information Technology and Business Process Association of the Philippines (IBPAP), the IT-BPO industry is the second largest source of dollar income for the Philippine economy, bringing 22 billion US $ in the country and creating 1.2 million direct jobs for Filipinos in 2015. In line with these numbers, the Philippine Central Bank predicted that the IT-BPO industry’s dollar income will surpass the Overseas Filipino Workers remittances by 2017.
The IT-BPO industry in the Philippines has come a long way since its beginnings in 1992. Thanks to these great achievements, foreign companies are now attracted more than ever to invest in the Philippines. A statement from the Contact Center Association of the Philippines (CCAP) explains that only 17% of the outsourcing market is currently tapped in the country.
Globally, the sector has a promising growth potential. As more IT-BPO will come to take shape in the coming years, the industry is expected to reach a volume of 1 trillion US $ from its 166 billion US $ currently. Sectors like telecommunications, financial services, hospitality and manufacturing are now seeing highly active outsourcing investment in the Philippines.
Learn more about the history, trends and factors behind the success of IT-BPO in the Philippines in the following infographic created by Manila Recruitment.
About the author
Valerie C. is a Content Specialist at Manila Recruitment, a company providing headhunting solutions for the recruitment of executive, expert, technical and specialist positions in the Philippines.
Article edited by ASEAN UP